〜Investment strategy utilizing the distribution yield of 海OETF〜

## Investment strategy using dividend yield of ETFs (Data as of end of April 2025)

Below, based on the latest data as of the end of April 2025, we explain the dividend yield (Dividend Yield) and SEC Yield of major ETFs, and detailed investment strategies that utilize them.

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### 1. SCHD (Schwab U.S. Dividend Equity ETF)

| Indicator.                                    | Value         | Data point |
|-----|-----|-----------|
| **SEC Yield (30 days)**          | 3.97%      | 2025/04/24 |
| **Distribution Yield (TTM)**  | 3.72%.     | 2025/03/31 |
| **Current Dividend Yield**.   | 4.03%.     | Trailing 1-year |
| **Payout Ratio**                     | 60.8%　  | Trailing 1-year |
| **Dividend Growth (1Y)**.        | 16.7%      | Trailing 1-year |
| **Stock price (USD)**.             | 25.79.       | Last price |

**Discussion:**
- A regime with a dividend yield above 4% is a “once-in-a-decade buying opportunity.”
- The growth in distributions continues, suggesting sustainability.

**Risk factors:**
- There is a risk of selling high-dividend stocks when economic growth slows.
- Sector concentration bias (heavy weighting in financials and consumer staples) may worsen performance when certain sectors underperform.
- If the portfolio includes significantly reduced-dividend stocks, there is a risk of yield decline.

**Investment strategy:**
- Consider add-on purchases when the yield is 4% or higher.
- For sector diversification, also consider using other ETFs in conjunction.

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### 2. VYM (Vanguard High Dividend Yield ETF)

| Indicator                                        | Value.           | Data point |
|-----|-----|-----------|
| **Distribution Yield (Stocks Avg)**      | 2.69%         | 2025/03/31 |
| **Current Dividend Yield**              | 2.98%         | Trailing 1-year |
| **Payout Ratio**                            | 53.8%          | Trailing 1-year |
| **Dividend Growth (1Y)**                   | 7.98%         | Trailing 1-year |
| **Stock price (USD)**                       | 123.76         | Last price |

**Discussion:**
- Broad diversification into stable high-dividend stocks is attractive.
- Recently, the valuation is not particularly inexpensive.

**Risk factors:**
- If overall market appetite for high-dividend stocks declines, performance could be affected.
- In recessionary periods, high-dividend stocks may also face cutbacks.
- Higher weight in energy and financial sectors makes it susceptible to crude oil prices and interest rate movements.

**Investment strategy:**
- Actively buy when yield rises above 4%.
- Normally continue dollar-cost averaging to maintain diversification effects.

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### 3. VT (Vanguard Total World Stock ETF)

| Indicator                                        | Value       | Data point |
|-----|-----|-----------|
| **Current Dividend Yield**      | 1.95%     | Trailing 1-year |
| **Dividend Growth (1Y)**       | -0.88%    | Trailing 1-year |
| **Payout Ratio**                     | 38.6%     | Trailing 1-year |
| **Stock price (USD)**             | 116.13    | Last price |

**Discussion:**
- A globally diversified portfolio, effective as a long-term stable asset.
- Currently somewhat overvalued.

**Risk factors:**
- Instability in emerging markets could affect overall performance.
- Currency risk (other than USD) exists.
- In global economic downturns, overall downside risk increases.

**Investment strategy:**
- Continue dollar-cost averaging as the core of a globally diversified investment.
- In a market crash, consider spot buying to capture yield increases.

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### 4. Market environment and interest rate trends

- In the inflationary period of the 1970s, stocks eventually rose despite rising interest rates.
- Currently, the U.S. 10-year Treasury yield is around 4.5% but may fall after inflation subsides.

**Risk factors:**
- If inflation remains longer than expected, real yields may erode.
- Rapid changes in monetary policy could raise market volatility.

**Strategic responses:**
- In rising yield environments, invest without hesitation and reinvest dividends to aim for compounding effects.
- Adjust cash positions according to interest rate trends.

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## Summary

1. **SCHD**: A dividend yield above 4% indicates a superb buying opportunity. However, be mindful of sector concentration risk.
2. **VYM**: Focused on value sectors. Add to positions when yields rise during a crash.
3. **VT**: Global diversification for a stable asset. Target spot purchases during market corrections.
4. **Common risks**: Be cautious of prolonged inflation, global economic slowdown, and currency risk.

An investment strategy that uses ETF dividend yields requires identifying the right buy timing when prices are undervalued and maintaining strong risk management. Aim for solid asset formation with a long-term perspective.